Daily chart: GBP/USD found resistance at the level of 1.6766 and now this pair is forming a lower high pattern below that level. This movement is normal, since the GBP/USD is in a corrective phase in its bullish bias. However, it is still very likely that this pair will fall to the support level of 1.6663, because the GBP/USD is overbought. However, if the pair manages to break the resistance level of 1.6766, it's expected to rise to the level of 1.6851. The MACD indicator is in positive territory.
H4 chart: In this chart, the GBP/USD formed a fractal near the resistance level of 16820. It is very likely that this pair will fall to the support level of 1.6667, at which there is one bullish trend line. If the pair manages to break that level, it would be expected to fall to the level of 1.6644. However, it is very likely that the GBP/USD will make a bullish rebound at that trend line and continue the bullish bias. The MACD indicator is in negative territory.
H1 chart: This pair found support at the level of 1.6700 and formed a point of control there. If the pair manages to break the resistance level of 1.6750, it's expected to rise to the level of 1.6800. We think the current trend of this pair as it is declining is only corrective movements in favor of the bullish bias. The MACD indicator is oversold.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.6750, take profit is at 1.6800, and stop loss is at 1.6700.
The material has been provided by InstaForex Company - www.instaforex.com
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